Los Angeles daily herald., 1887-09-26
NOT TRUE
That There is Any Danger
of a Crash.
BUSINESS LIVELY AS EVER.
Views of Mr.. Hervey Lindley
on this Important
Subject.

reference to the alleged danger OF a
collapse OF the real estate market
and with view of obtaining some
reliable light on the subject, a repre-
sentative of the HERALD yesterday
questioned Mr.. Hervey Lindley, one
one of the representative men of the
city and one whose word can always
be taken as an authority not to be dis
puted.
Mr.. Lindley said that there was not
the least danger of crash this win
ter and what was more, he believed
the market to-day to be in a better
state than it had ever been before.
All this talk in reference to the buyers
not being able to meet their second
payments falling due between this
date and the first of January
was nonsensical. In the first
place no one could tell exactly
how much will have to be paid in this
interval. That is one of the thing
which even wisest man cannot even
approximate, for there is no way of
knowing or Of finding this out. 1t had
been stated that $44,000,000 would
have to be paid before January first,
but Mr.. Lindley did not think that
the payments to be made amounted to
that figure. Even if they did it would
not take much money to make things
straight. Nearly all of the purchasers
knew where the money was coming
from when they bought, and one dol
lar would settle an amount many
times larger When the time comes
for the second payments the money
will pass from hand to hand, and the
probability is that not a dollar will be
drawn from the banks. Mr.. A. will
pay to Mr.. B. and Mr.. B. to Mr..
c., and SO on until the same
money will settle more of the
dreaded second payments than its
face value represents in units. The
purchasers have been extremely care
full in this respect, and there can be
no danger, even if this were the only
fact to be relied upon.
DEPOSITS IN BANK.
In Mr.. Lindley's opinion there is on
deposit not less than eight zen million
dollars, subject to the will of the de-
positors. This money is ready and
waiting for those who may desire to
use it, and even if a dollar would clear
off but three times it's face value in
first payments, the alleged $44 ,000, 900
would 'oe more than covered. The
probability is that this money will not
be touched at all. The question is,
"Have not these croakers sold out,
and do they not want to buy again ?"
That seemed to be the real reason of
all the talk about the crash
in Mr.. Lindley's mind, but
so far as he could see there
was not the least indication of
such state of affairs. With more
money in the banks than there has
ever been before and with more COM
ing. the person who feared the crash
showed very weak mind indeed.
There had been some talk about a
stringency in the money market, but
that had not been the case, nor was it
likely to be. The banks had, it is
true, refused to advance money on
marginal investments, but this had re-
suited in placing the. market on a
much irmer basis. The fact that the
buying was going on just the same as
when money was advanced on mar
ginal investments showed that the
coin was being obtained for solid in
vestment, and that the buyers know
4 :o{x xxyhn tho cnnnn6 nov
ment is to come from. In this city
alone there is on deposit awaiting the
pleasure of the buyers about
$12 900 900, the Pasadena bank
has over $1,OO0,OOO, and the
other banks throughout the county
have large amount on deposit. The
banks have, as before stated, never
been so well prepared as at the pres
ent time, and there is no indication
that there will be a change for the
worse.
EASTERN MONEY.
Mr.. Lindley said that there was a
constant influx of money from the
East. Every train brings investors
who draw on their accounts in the
East for money to make their first pay
ments. They then give notes for the
second and third payments, and these
notes are cashed and the money for
warded here by telegraph. Thus it
often happens that inside of forty-eight
hours after the first payment the en-
tire amount has been placed on de-
posit in the banks here, subject to the
order of the seller. Outside of the
excursions which are arriving,
there are others from Kan
sas and other States who
arrive every day with the money in
their pockets with which they buy.
Their second payments do not come
from the banks here but from the
East, and most of it is ready at short
notice. Then the real estate agents re-
ceive many orders to purchase from
parties who have never been here, and
from all of these the money comes,
and is flowing into the banks at a very
rapid rate. When it is taken into con-
sideration that majority Of the buy
ers are eastern people, and that thelI
money is constantly being brought
here, it does not seem clear as to the
basis of the grounds for the croakings
of those who feign to be frightened
The fact that the record of sales has
been small on some parucu
lar day, does not indicate
in the leas: the amount
Of business that is being trans
acted. Many of the nomina
sales are in reality for large amounts
and many sales are made which are
not recorded for some time after tht
sale has been consumated. The
record as published is therefore likely
to deceive, and should not be taken a.
indicative of the activity of the market
Mr.. Lindley was positive in his state
ment that the market was in a bette
condition than ever, and that Their
was not the least danger OF strin
gency in the money market or OF
crash this fall or winter.
Young Mems Institute.
4 II L go IL.